MKS Instruments Inc (MKSI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,260,000 | 3,377,000 | 2,924,200 | 2,300,900 | 1,862,410 |
| Property, plant and equipment | US$ in thousands | 784,000 | 800,000 | 326,000 | 284,300 | 241,900 |
| Fixed asset turnover | 4.16 | 4.22 | 8.97 | 8.09 | 7.70 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,260,000K ÷ $784,000K
= 4.16
MKS Instruments Inc's fixed asset turnover ratio has exhibited fluctuations over the past five years. The ratio decreased from 8.97 in 2021 to 8.09 in 2020 before increasing slightly to 4.22 in 2022. However, in 2023, the ratio decreased further to 4.16.
A high fixed asset turnover ratio indicates that the company is generating significant sales relative to its investment in fixed assets. This could suggest efficient utilization of fixed assets and potentially better operational performance. Conversely, a lower ratio may indicate underutilization of fixed assets, inefficiencies in operations, or declining sales relative to the level of investment in fixed assets.
Therefore, the decreasing trend in fixed asset turnover for MKS Instruments Inc from 2021 to 2023 may warrant further investigation into the company's operational efficiency and asset utilization strategies to ensure optimal performance and profitability.
Peer comparison
Dec 31, 2023